CenturyLink (NYSE: CTL) may have signed up 29,000 new broadband subscribers and saw a 22 percent reduction in access line losses, but neither factor was enough to prevent the service provider from seeing its revenue decline in the second quarter.
Although it does not break out its business and residential voice line metrics, CenturyLink had 6.7 million POTS lines as of the end of Q2 2010. Once again, broadband continues to be CenturyLink's residential shining star, adding 29,000 new subscribers during the quarter.
Revenue for the second quarter was $1.7 billion, down from $1.8 billion in Q1 2010, but above the $634.5 million it reported in Q2 2009. CenturyLink attributes the increase to a $1.23 billion of revenue contribution from the Embarq acquisition it completed on July 1, 2009.
Speaking of EMBARQ, CenturyLink said it has completed the billing and customer conversion of legacy customers in North Carolina and the conversion of 25 percent of legacy Embarq customers. After completing another large billing conversion later this year, CenturyLink said it will wrap the final two legacy Embarq customer billing conversions in Q3 2011.
Going forward, CenturyLink expects Q4 2010 revenues of $1.720 to $1.745 billion and diluted earnings per share of $.77 to $.81.
Despite its positive outlook and completion of much of the Embarq conversion, CenturyLink's biggest challenge will be in integrating the assets it acquires from Qwest (NYSE: Q) when it completes that deal early next year.
- see the earnings release here
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More Q2 2010 wireline earnings:
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